Trump runs his scams in plain sight
On Truth Social, Trump has repeatedly promoted Stake, an unregulated online casino that, according to state gambling regulators, is operating illegally. Trump publicized Stake alongside the UFC match being held at the White House on his 80th birthday, June 14. He posted AI-generated images featuring himself, UFC CEO Dana White, and the Stake logo on April 9, May 8, and twice on May 20.
Stake is a major
sponsor of the UFC, including prominent placement in the UFC octagon.
But gambling regulators across the country say it is an illegal online casino. Stake.us has two types of currency: 1. “Gold Coins” which cannot be converted into real money, and 2. “Stake Cash” which can be converted to crypto currency or gift cards. To obtain “Stake Cash” players buy “Gold Coins” and receive “Stake Cash” for free.
A lawsuit by the Los Angeles City Attorney called this “a
ruse” that is indistinguishable from real money gambling. Nevertheless,
Stake.us has not obtained or sought gambling licenses from any jurisdiction in
the United States.
Why is Trump lending his image — and the White House itself
— to this kind of scheme? One possible answer was included in the May 20 FEC
filing of MAGA Inc., the primary Super PAC connected to Trump. On April 27,
Bijan Tehrani, the co-owner and co-founder of Stake, donated $1 million to MAGA
Inc.
Tehrani, a billionaire who resides in Australia, is able to donate to MAGA Inc. because he was born in the United States. Tehrani is a named defendant in the California lawsuit, which alleges Tehrani “created, directed, controlled, knowingly profited from, and otherwise knowingly participated in the illegal conduct.”
Overall, Stake.us is facing more
than a dozen lawsuits, including consumer class actions, across the United
States. As a result of legislative and regulatory actions in recent years,
Stake.us is now blocked in at least 17 states.
Stake pays millions to celebrities to lend legitimacy to its
platform. According to a 2023 report from the Financial Times, Drake is paid
$100 million annually to promote Stake.
The government contractor loophole
Government contractors are prohibited from
making political contributions in the United States, even to Super PACs. But,
as the latest MAGA Inc. filing reveals, there are plenty of loopholes.
For example, Intuitive Machines, a space service company, is
a significant government contractor. It has been particularly successful in
securing government contracts during the second Trump administration. Intuitive
Machines has secured at least eight new government contracts since Trump
returned to the White House, including a NASA contract valued at $46.8 million
on March 25, 2026.
Intuitive Machines cannot donate to MAGA Inc. But Kamal
“Kam” Ghaffarian, the founder and chairman of Intuitive
Machines, is not prohibited from donating to Super PACs. On April 9, Ghaffarian
donated $1 million to MAGA Inc.
Ghaffarian is also founder and chairman of other major
government contractors, including Axiom Space, X-energy, and Quantum Space.
The tobacco payoff
On April 30, the tobacco company Reynolds American, through
its RAI Services subsidiary, donated $5 million to MAGA Inc.
Two days later, according to reporting by the New York Times, Trump met with Reynolds executives and Brian Ballard, a Reynolds lobbyist and Trump fundraiser, at Trump’s golf club in Juipter, Florida. At the meeting, the executives complained to Trump about the prohibition on fruit-flavored vapes, which have been banned because of their appeal to children.
Trump interrupted the meeting to call FDA Commissioner Marty
Makary. Within a week, the FDA had produced new guidance to facilitate Reynolds
and other companies to resume selling fruit-flavored vapes. Makary reportedly
resigned in protest.
